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Women have more money and more financial independence than ever before. When it comes to planning for their long-term financial future, however, many lack the time or have the confidence to take matters into their own hands. Those who do make the effort, stand to reap the rewards.

“A lot of women tend to set aside their finances because they have other priorities to deal with, particularly family and children. Once they start thinking about their financial situation, however, they wrap their heads around it and become very focused,” said Caroline Nalbantoglu, president of CNal Financial Planning.

Released last month, the 2012 TD Women Investor Poll seems to back up Nalbantoglu’s assertions — 76 per cent of female investors who buy and sell shares through self-directed accounts claim to have either outperformed the stock market or performed close to it over the past two years. This kind of success should be encouraging for women who want to play a more active role in managing their money.

The report also indicates most women leave retirement planning, investing and investment management to their male partners, while remaining stuck in the stereotypical role of budgeting and managing household expenses. This isn’t necessarily the best approach.

“For those women who are part of a couple, make sure your goals are aligned. You both need to be involved in conversations with the person managing your finances. Men and women each bring different perspectives and highlight things in the planning that perhaps one person wouldn’t think of. So it’s valuable input that should be there,” said Kim Parlee, vice-president at TD Wealth Management.

It’s also in the nature of women to act more conservatively than men when it comes to their investments and many fear squandering it all away.

“Women automatically assume the worst and some get it into their heads that their capital cannot be touched. Well, why not? Is it because you want to leave an inheritance to your children? Or is it because you’re afraid that you’ll outlive your capital? Well, do you realize how much capital you have and are you preventing yourself from enjoying your life? Everything needs to be done in moderation,” Nalbantoglu said.

Here are five tips Nalbantoglu and Parlee have for women.

Don’t trust your financial planner implicitly

This is important for everyone, but especially older women who become widows and can fall prey to financial fraud. Never sign blank cheques and make sure your financial adviser is telling you exactly what you’re doing and why. That being said, don’t be so untrustworthy that you think everybody is out to get you. The idea is to be well informed and play an active role alongside your adviser to move forward with your goals.

Implement and monitor your financial plan

Despite the fact women represent 47.3 per cent of the workforce in Canada, less than half of them have a financial plan. Identify where you are today in your investment journey and summarize your areas of financial need. Once a plan is in place that lists your assets and liabilities, expenditures, lifetime cash flow forecasts and other benchmarks, make sure to monitor your progress. Continue to update it should your personal/financial situation change.

Offset income inequality by more savings

Over the course of their careers, women tend to earn less than men. Women are also more likely to leave the labour market during their working lives because of pregnancy, to take care of children or parents, etc. This period during which women are not employed can affect their retirement benefits. For example, in 2010, the average monthly pension of new female retirees under the Quebec Pension Plan was $371, compared with $528 for men. Therefore, women need to make up for career-related differences by taking a different approach than men when preparing for retirement. This means saving a larger proportion of their money.

Plan for the long-term and the unexpected

Not only do women generally earn less than men, but they also retire earlier and live longer. Consider that in 2012, statistics suggest a 60-year-old man can expect to live another 22.9 years, whereas a 60-year-old women will live another 26.1 years. In order to make up this difference, women need to save 10 per cent more than a man. Furthermore, recognize that life can sometimes throw curveballs your way. Don’t assume the government or your husband’s pension plan will take care of you. You might be happily married now, but according to Statistics Canada, divorces between couples age 55 and over — are on the rise. Unfortunately, marriages end and not all assets are included in the province’s family patrimony laws.

Learn how to effectively manage your time

Time — or rather the lack of it — is one of the oft-cited reasons why women aren’t as involved in their finances as they probably should be. It’s important to realize just because women are investing for themselves, doesn’t mean they have to do it completely alone. Be honest with yourself. Finding the time to manage your money is the same as many other aspects of your life. If you want to be fit, but don’t have the discipline for it then you hire a personal trainer. In the same mould, if your financial well-being is truly important to you, then outsource your time to a financial planner. Finally, learn how to get the most out of your idle time. For example, educate yourself by reading articles on your smartphone during downtime at various appointments throughout the day.

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